need help analyzing a deal with mortgage
Hello everyone:
I am considering buying my first investment property (and my first property). I came across a single family house in a nice neighborhood but it is not in the state I am living in (basically I will be hiring a property manager). The numbers are as follows:
price: 200k
30 days turnaround to get a tenant
monthly rent: 1700-2000
initial repair $2500
2.8% - 3.2% property tax
HOA per year 450-800
Housing insurance 1000-1200 per year
Management fee fixed 125 per month
500-600 per year maintenance
Most likely I will be putting 20% down and get a mortgage at 5% interest rate.
So from the numbers it is getting pretty close to the 1% rule. But I did the math and it seems that after the mortgage payments and all expenses, I am only getting $468 back per year. Am I missing something here? Would you say this is a good deal?